Gas Lease FAQ

Have they made any indication how quickly they plan to start drilling? Will they be getting the owner's list from the county tax records?  The reason I am asking is that the HOA still has the property listed w/my ex-husband, but the deed, etc is all in my name.
Chesapeake executive Greg M. states as early as the middle of August a well will be placed on this site. However, this well is only there to keep some 2,000 leases from expiring, We do get the owner information from the Tarrant County Tax Records, but we can take care of any problems very easily.  Chesapeake will decide when to drill the area but from what I understand it could be this year.

Where is the final calculation numbers coming from on the size of your lot and  who is doing  final calculations of the lot sizes, since they are being calculated to the middle of the street, and if you have street in front of your house and behind your house are they calculating to the middle of each?
The lot sizes come from the county records and the street acreage is added on from the measurements from the plat.  If you live on a corner you will be paid for both streets.

My concern is I never received anything in the mail from anybody over my mineral rights.  Is my home still included in this lease signing?
If you bought your home directly from Legacy/Meritage, our information states that your mineral rights did convey to you. If you bought your home as a resale, you'll have to check your contract & deed.  The only way to know with 100% certainty that you do own your mineral rights is to check the property deed at the Tarrant County Courthouse. Dale Resources is doing this task now & will have this answer at the Friday/Saturday signing.

Jon, what documents do we bring to the lease signing?
You will need a driver’s license, and divorce decree if an ex spouse’s name is also on the deed.  A will or probate if you inherited the property through a death.

Do we sign the lease agreement prior to the meeting next week? Or do we sign at the meeting?
 No, you will sign at the meeting.

Does Dale Resources have the accurate acreage information for each home; or has this been provided to them in order to receive the correct compensation for the lease agreement?
Yes, Dale Resources will have the deed & plat information.

Does each person on the mortgage loan have to be present for the meeting on Friday to sign the lease agreement?
Yes

Article 15 addresses the issue of subordination. Correct me if I'm wrong...is this saying we do not have to have a subordination clause added to our mortgage contract if it doesn't already grant us mineral rights? If I am wrong and a subordination clause is required, are the fees associated with that the homeowner's responsibility?
You will not be required to get a subordination agreement unless the well bore runs directly under your property.  If this occurs you will be responsible for the fees.

I'm leaving to go out of town before the signing what do I do?
Call Dale Property Services L.L.C. to make arrangements. (817) 451.5353

I have heard through friends who live in nearby neighborhoods that Stone Meadow broke from the Hulen West Alliance to negotiate this deal. Is this true? If so, why was there a push earlier this year to wait and sign and to join a group with greater bargaining power?  
The Hulen West Alliance (HWA) was setup initially to create a larger parcel of land for mineral right negotiations.  Their committee was also responsible for creating a highly restrictive lease that would offer maximum protection for all neighborhoods involved. The Stone Meadow Gas Lease Committee was hesitant from the beginning to join the Hulen West Alliance for these reasons:

1. The neighborhoods were not continuous in location.
2. There were communication issues in some of the neighborhoods that hampered the coalition.
3. Most importantly, the neighborhoods in the HWA were NOT all serviced by the same drill companies so were negotiating with different gas companies. Some had competition for the mineral rights, many (like Stone Meadow) did not.

Your Gas Lease Committee started this process almost 2 years ago. The input we've provided from the beginning was to wait for signing due to our ongoing negotiations, not necessarily to wait in order to join a larger group.  The HWA began only months ago. For Stone Meadow to continue with this alliance was not in the best interest of our community. This is why we have concluded our negotiations now instead of waiting for the HWA.  

Other areas around town have seemed to negotiate deals that had a greater signing bonus per acre and greater % of royalties. What factors made the Gas Committee stand behind this one.
Once we determined that Stone Meadow had no other competitors for our mineral rights (Chesapeake is the only company with drill access to Stone Meadow), it was simply a matter of negotiating the lease terms. There are far too many factors that play into other areas receiving higher bonuses or royalty percentages.

Where in the contract does it state the signing bonus?  
It doesn’t state the signing bonus in the contract.  It acknowledges that a cash bonus was paid at execution of the lease.

Will the check cut to the homeowners have taxes withheld?
No

Is it reported as taxable earnings or dividends by Dale Resources?  Is that widely known by the folks that are signing?
Taxable income

I have review the gas lease agreement for the Stone Meadow Community and would like to offer you a suggestion. There is a company called Paloma Resources located in Arlington, TX that are willing to pay up to $30,000 an acre.
 Thank you for this suggestion, however, Paloma Resources is not a player in our neck of the woods. This is the same for XTO, Four 7's, Corizzo, etc. We only have one company to negotiate with & that is Chesapeake.